Relationship building in African procurement is key to economic growth and resilience
As Africa's economies evolve, procurement is quietly taking centre stage as one of the continent's most powerful drivers of growth and development. Public procurement alone accounts for an average of 17% of GDP across African countries, underpinning infrastructure projects, public services, and national progress, according to the World Bank (2023).
While the sector's economic influence is undeniable, it's also undergoing significant transformation in both value and capability. In 2022, the procurement analytics market across the Middle East and Africa generated $178m (approximately R3.36bn), with forecasts predicting a compound annual growth rate (CAGR) of 25.2% through 2030 (Grand View Research).
The region's retail sourcing and procurement market is also set to surpass R510m (around R9.64bn) by 2030, spurred by the demand for fast, tech-driven procurement strategies.
But beyond the numbers and digital shifts, a quieter and equally important movement is gaining momentum — one centred on the strength of human connection and relationships that continue to shape procurement's future on the continent.
The power of human connection
'Procurement is no longer just about transactions,' says Paul Vos, CIPS Southern Africa general manager. 'It's about creating value through partnerships. In today's complex environment, the strength of your supplier and stakeholder relationships can determine your entire supply chain's success—or failure.'
This is especially true in a world where geopolitical tensions, trade disruptions, and supply chain uncertainties are becoming more frequent and more complex. From energy and commodity markets to logistics networks, procurement professionals are under mounting pressure to maintain continuity and performance in an unpredictable environment.
"Strong supplier relationships become a form of strategic insurance," Vos adds. "In a volatile global landscape, it's those relationships that provide the flexibility and foresight needed to navigate disruption and still deliver results."
Collaboration as competitive edge
Across Africa, procurement leaders increasingly embrace collaboration, transparency, and long-term engagement as not just ethical ideals but strategic differentiators. Relationship-building is no longer a soft skill but a core driver of risk mitigation, supplier innovation, and sustainable growth.
Research published in the African Journal of Procurement, Logistics and Supply Chain Management highlights a strong link between supplier relationship management (SRM) and improved organisational performance, especially in public procurement, where accountability, continuity, and trust are critical (AJOL, 2024). Similar findings on the role of SRM in boosting operational resilience are echoed in recent academic work published on ResearchGate.
Vos says this relationship-led approach is already changing procurement outcomes on the continent. "In healthcare, for instance, closer cooperation between public agencies and private suppliers has helped improve the distribution of essential medicines. Long-term supplier partnerships in the energy and mining sectors enable companies to navigate fluctuating markets and logistical pressures with greater stability and confidence."
Trust as a competitive advantage
He adds that trust must be cultivated intentionally. "Trust doesn't appear overnight—it's earned through transparency, consistency, and mutual respect. Procurement professionals who build that trust gain a clear advantage when disruption hits."
Recent global crises—notably the Covid-19 pandemic and widespread port congestion in West and Southern Africa—offered clear evidence. Organisations with stronger supplier relationships were able to activate local networks, diversify sourcing quickly, and maintain operations under pressure, while those relying on rigid or siloed contracts struggled to adapt.
Technology is enhancing these dynamics rather than replacing them. AI-powered supplier scorecards, blockchain-enabled procurement systems, and cloud-based collaboration platforms are making it easier to track performance, share information, and deepen supplier engagement.
"Digital transformation is a critical enabler," says Vos. "But it works best when it supports a strong foundation of human relationships. Data can tell you what's happening in your supply chain, but only trust and collaboration can drive the strategic responses needed to stay competitive."
One major benefit of strong relationships is accelerated innovation. In sectors such as telecommunications and agriculture, organisations that engage suppliers in early-stage planning and design improve time-to-market, efficiency, and cost-effectiveness.
"When you treat suppliers as true partners, they're more willing to bring new ideas to the table," Vos explains. "That's how you unlock innovation—not through pressure, but collaboration."
Diversity also shapes how procurement teams build and maintain these partnerships. The increasing presence of women in procurement leadership strengthens relationship-driven approaches and contributes to a more values-based culture.
Recognising this, CIPS Africa will launch the new She Inspires Award at the upcoming CIPS Africa Conference & Awards 2025 to celebrate women driving excellence across the profession.
"Women-led procurement teams are often at the forefront of sustainability, social procurement, and ethical sourcing," says Vos. "We want to celebrate that impact and create platforms where more women can lead, influence and inspire across the profession."
These ideas will form the core of the discussion at the CIPS Africa Conference & Awards 2025, set for 6–7 August at The Houghton Hotel in Johannesburg. Under the theme "Connect & Engage", the event will explore how stronger connections between buyers and suppliers, public and private sectors, and professionals across borders can unlock new levels of procurement excellence.
'This year's conference is not just about learning—it's about connecting,' Vos says. 'It's a space for procurement professionals to share, collaborate, and build the kind of relationships that will define the future of our industry.'
All rights reserved. © 2022. Bizcommunity.com Provided by SyndiGate Media Inc. (Syndigate.info).
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